Mid December Economic News

The consumer price index rose 0.8% in November, topping the 0.6% increase rise economists had expected, the Labor Department reported December 14. Core consumer prices, which exclude volatile food and energy prices, rose 0.3%, the biggest increase in 10 months.
The producer price index, which measures wholesale inflation, surged 3.2% in November, the largest monthly increase in 34 years, the Labor Department said December 13. Core wholesale prices, which strip out energy and food prices, rose 0.4%, double the number expected.
The U.S. trade deficit for October expanded to $57.8 billion, the highest level since July and 1.2% above the September imbalance, the Commerce Department reported December 12. Although U.S. exports of goods and services rose for an eighth consecutive month, the gain could not overcome a 1% rise in imports to $199.5 billion, also a record. The nation’s deficit with China leaped 9.1% to $25.9 billion, another monthly record.
More encouraging economic news came from the nation’s retailers, whose sales surged by 1.2% in November, double the 0.6% gain analysts had anticipated. Sales by department, general merchandise and specialty clothing stores all posted solid gains. Auto sales, however, fell by 1%.
The economy got a further boost from the nation’s factories, mines and utilities, as industrial production increased 0.3% increase in November, the Federal Reserve reported December 14. The modest gain followed a sharp 0.7% decline in October.
Long- and short-term mortgage rates reversed trend and rose for the week, Freddie Mac reported December 14. Meanwhile, mortgage applications increased 2.5% for the week ending Dec. 7, the Mortgage Bankers Association said December 12.
This week look for updates on housing starts and building permits on December 18.
Economic data compiled from reports published by msnbc.com, cnn.money.com and Yahoo! economic calendar.